Nearly half a million homes, mainly of new construction, could be incorporated into the rental market between now and 2016. This is the “prudent” calculation made by Arrenta, a large Spanish company especialised in rentals.
These 500,000 newly available homes would represent an increase of two points in the rental rate in Spain, which would increase from today’s 17% to 19% – still far from the average of 38% found in Europe’s richest countries.
The high number of empty homes left by the economic crisis in Spain is one of the biggest problems for its economy. Renting these out would be a great formula to start incorporating these vacant properties into the market.
This half a million homes could be further increased by a trend that has already begun in some coastal areas, of property investors buying newly built properties at very competitive prices in order to rent them out and thus obtain attractive returns on their investment.